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POPSMilitary Spending: Not ‘Recession Proof’ The New York Times' Thom Shanker and Christopher Drew survey the outlook for U.S. military spending. From the equities standpoint, U.S. aerospace and defense stocks are down 33.2% year to date, versus a drop of 33.9% broadly for U.S. equities.
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POPSNew U.S. Air Force Tanker Six Years Away? Via govexec.com. Story quotes another U.S. Air Force general, who says it's "unconscionable to ask people to fly in combat in 50-year-old airplanes." Note: as of 3:22pm, Northrop Grumman shares were down 2.5%. They've fallen 15% thus far in 2008.
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POPSArming Iraq Front page story from the Wall Street Journal lays out both business and national security implications of the potential deal, notably underscoring the importance of Middle Eastern market for defense contractors. Lockheed Martin, Raytheon, Boeing, General Electric, and United Technologies get mentions.
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POPSPressure is on For Satellite Image Company We profiled GeoEye, and presented a bullish case for its shares, just over a year ago. http://www.forbes.com/businessinthebeltway/2007/07/25/washington-congress-geoeye-biz-wash-cz_0725beltway.html The stock has gained 12% since our story, versus a 16% drop for the S&P 500. It will be interesting to see what happens after the launch. Odds are it will succeed, but if not, shareholders could get wiped out.
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POPSAnother Chance for Boeing Don't be surprised if Northrop/EADS still gets the bid. The Pentagon previously said it was happy with the original outcome, and Young doesn't want to split the bidding.
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POPSGAO Lifts Boeing It's a snub to the Air Force and Northrop, certainly. But the GAO's decision doesn't mean the Air Force will re-do the bid.
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POPSBoeing Doing Just Fine Boeing may not have gotten the tanker deal (awarded to EADS and Northrop Grumman), but it appears to be moving ahead quite well.
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POPSHow Safe Are American Planes? This disturbing article based on Congressional testimony given on the behalf of whistleblowers at Southwest airlines draws into question the safety of American planes. According to the whistleblowers, the Federal Aviation Administration has looked the other way when confronted with safety problems on planes. They claim that the FAA tends to consider the airlines as "customers" instead of companies that require regulation. The FAA has denied this portrayal.
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POPSBoeing's Big Loss Obviously, this is a crushing blow for Boeing. But be wary of alarmist cries that awarding the contract in part to EADS is a blow to the U.S. as the economy teeters on recession. The deal shows that the U.S. is still open to foreign investment, and it's a boon to the already booming manufacturing sector in Alabama.
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POPSVirgin Air to Try Flying with Biofuel It will be years before alternative fuels become the standard in the airline industry, but this is an interesting first step. This month a Boeing 747 will fly from Heathrow to Amsterdam on 80 percent jet fuel and 20 percent biofuel. If the flight is successful, it will add momentum to the search for cheaper and cleaner alternative jet fuel.